A key goal of this partnership is to reduce the dependence on China to secure critical minerals as the country has developed a mineral processing infrastructure besides acquiring mines in Africa to source cobalt
The Minerals Security Partnership (MSP) is a US-led collaboration of 14 countries (Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, UK, the European Commission, Italy, and now India). It aims to enhance public and private investment in critical mineral supply chains globally.
A joint statement was issued by the Indian and US governments during Prime Minister Modi’s recent visit to the United States. India’s inclusion is crucial in this partnership because a key aspect of New Delhi’s growth strategy is a shift to electric vehicles along with indigenous electronics and semiconductor manufacturing.
India and Australia have already signed the Critical Minerals Investment Partnership — a major milestone in building new supply chains underpinned by critical minerals processed in Australia that will help India’s plans to lower emissions from its electricity network and become a global manufacturing hub, including for electric vehicles.
Before India, the partnership was expanded earlier this year to include Italy. Ironically, countries like Indonesia, Vietnam, the Democratic Republic of Congo, which have abundant reserves of critical minerals are not part of this strategic grouping formed by the US.
A key goal of this partnership is to reduce the dependence on China to secure critical minerals. The critical minerals that the MSP is likely to focus on include Cobalt, Nickel and Lithium which are used in manufacturing of batteries of electric vehicles and wind turbines along with 17 ‘rare earth’ minerals that are key components of semiconductors.
Rare earth minerals are classified into light (atomic numbers 57-63) and heavy REE (atomic numbers 64-71). The former are more abundantly available while the latter are rarer in nature and consequently more expensive.
Most countries are dependent on China for REEs not only because the country has developed a mineral processing infrastructure but also because China has acquired mines in Africa to source cobalt.
It dominates roughly 60 per cent of global RE production. Additionally, geopolitical uncertainties, unfavorable rising of prices, COVID-19 pandemic and the ongoing Russia-Ukraine war have resulted in the supply chain disruptions across the globe for these critical minerals.
The MSP has shortlisted several projects to collaborate in sharing of expertise, developing battery materials and jointly developing a minerals processing facility in South America.
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